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Tips & Advice

Valentine's Day Gift Ideas for Wife in 2025

Introduction: Valentine's Day is a special occasion to celebrate the love and bond you share with your wife. Finding the perfect gift to express your affection and appreciation can be a delightful challenge. Whether you're searching for something unique and thoughtful or luxurious and extravagant, there are endless options to consider. In this article, we'll explore a variety of Valentine's Day gift ideas for your wife, ranging from one-of-a-kind treasures to lavish indulgences that will make her feel truly cherished. Personalized Jewellery: Surprise your wife with a piece of personalized jewellery that is as unique as she is. Consider a necklace, bracelet, or ring engraved with her initials, a special date, or a meaningful message. Opt for high-quality materials like gold or sterling silver for a timeless and elegant look. Spa Day Experience: Treat your wife to a day of relaxation and pampering with a spa day experience. Book her a luxurious spa package with massages, facials, and other rejuvenating treatments to help her unwind and recharge. Alternatively, create a spa-like atmosphere at home with scented candles, bath salts, and plush robes for a wonderful experience. Customized Portrait: Commission a custom portrait of your wife created by a talented artist. Choose a photo that holds special meaning to both of you, such as your wedding day or a memorable vacation, and watch it transform into a beautiful work of art that she can cherish for years to come. Designer Handbag: Surprise your wife with a designer handbag that will make a statement. Choose a timeless classic from iconic brands like Chanel, Louis Vuitton, or Gucci, or opt for a trendy and fashion-forward design that reflects her personal style. Romantic Getaway: Plan a romantic getaway for just the two of you to escape the hustle and bustle of everyday life and reconnect. Whether it's a cosy cabin in the mountains, a beachfront villa, or a luxury hotel in a vibrant city, create unforgettable memories together in a destination that speaks to your wife's interests and preferences. You can opt for an instant travel loan if you need quick funds to arrange the best vacation. Fine Dining Experience: Treat your wife to a gourmet dining experience at a Michelin-starred restaurant or a cosy candlelit dinner at her favourite eatery. Reserve a private dining room for an intimate and romantic atmosphere and indulge in a decadent multi-course meal paired with fine wines and champagne. Conclusion: This Valentine's Day, make your wife feel truly cherished and adored with a gift that goes above and beyond. Whether you choose a personalized treasure, an unforgettable experience, or a lavish indulgence, the key is to celebrate your relationship and create lasting memories together. Take the time to express your love and appreciation meaningfully and let this Valentine's Day remind you of the special bond you share with your wife. After all, the greatest gift of all is the love and connection you share, and there's no better time to celebrate it than on Valentine's Day.

06-02-2024

Tax

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New Income Tax Slabs – Direct and Indirect Tax after Interim Budget 2024

Introduction In the interim budget for 2024, Finance Minister Shrimati Nirmala Sitharaman has announced that there will be no changes to the income tax slabs for the upcoming financial year, which spans from April 1, 2024, to March 31, 2025. As a result, individuals will continue to calculate their income tax payable using the same slabs as in the current financial year, 2023-24. It's worth noting that under the income tax laws, individuals who do not have any business income are required to choose between the new and old tax regimes each year. This means that an individual can opt for the new tax regime one year and switch back to the old tax regime the following year, depending on their preference and circumstances. Income Tax Slabs in New Regime Here are the income tax slabs applicable for FY 2023-24 (AY 2024-25) under the new tax regime, which will remain unchanged for FY 2024-25 according to the interim Budget 2024 proposals: Income tax slabs (In Rs) Income tax rate (%) Up to 3,00,000 0% 3,00,001-6,00,000 5% (tax rebate u/s 87A is available) 6,00,001-9,00,000 10% 9,00,001-12,00,000 15% 12,00,001-15,00,000 20% Above 15,00,001 30% About New Tax Slabs Here's what salaried individuals can expect in the new tax regime as per the Budget 2023 changes, applicable for FY 2023-24 and FY 2024-25: 1) Reduction of income tax slabs from six to five. 2) Increase in basic exemption limit to Rs 3 lakh from Rs 2.5 lakh, providing an additional Rs 50,000 benefit in the new tax regime. 3) Zero tax payable for incomes not exceeding Rs 7 lakh, thanks to the hike in rebate under Section 87A. 4) Introduction of standard deduction for salaried, pensioners, and family pensioners. 5) The new tax regime becomes the default tax regime. 6) Reduction of surcharge on incomes exceeding Rs 5 crore to 25% from 37%. 7) Provision of marginal tax relief for small taxpayers with incomes surpassing Rs 7 lakh. These changes aim to streamline the tax structure and provide relief to salaried individuals. Income Tax Slabs in Old Regime In the old tax regime, the basic exemption limits vary based on the age of the individual. For individuals below 60 years, the basic exemption limit is Rs 2.5 lakh. Senior citizens, aged above 60 years but below 80 years, enjoy a higher basic exemption limit of Rs 3 lakh, while super senior citizens aged 80 years and above have a basic exemption limit of Rs 5 lakh. Here are the income tax slabs for FY 2023-24 (AY 2024-25) in the old tax regime, applicable for individuals below 60 years of age, senior citizens, and super senior citizens. These income tax slabs will remain applicable for FY 2024-25 (AY 2025-26) as well. Current Tax Slabs for Below 60 Individuals as per Old Regime: Income tax slabs (In Rs) Income tax rate (%) Up to 2,50,000 0% 2,50,001 - 5,00,000 5% 5,00,001-10,00,000 20% Above 10,00,001 30% Old Income Tax Slabs for Senior Citizens as per Old Regime: Income tax slabs (In Rs) Income tax rate (%) Up to 3,00,000 0% 3,00,001 - 5,00,000 5% 5,00,001-10,00,000 20% Above 10,00,001 30% Old Income Tax Slabs for Super Senior Citizens as per Old Regime: Income tax slabs (In Rs) Income tax rate (%) Up to 5,00,000 0% 5,00,001-10,00,000 20% Above 10,00,001 30% Update on Direct Tax: In a significant move aimed at benefiting approximately a crore taxpayer, the Finance Minister proposed the withdrawal of outstanding direct tax demands. Under this proposal, tax demands of up to Rs 25,000 for the period up to the financial year 2009-10 will be withdrawn and demands of up to Rs 10,000 for the financial years 2010-11 to 2014-15 will also be waived. (Internal Research)

02-02-2024

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Interim Budget 2024: Capex Target Raised to ₹11.11 Lakh Crore, Fiscal Deficit to Reduce

What is capex? Capex, short for capital expenditure, refers to the funds a company invests in acquiring, maintaining, or improving fixed assets such as property, equipment, infrastructure, or technology. These expenditures are typically made to enhance the capacity or efficiency of the business or to extend its productive life. Capex is considered a long-term investment and is recorded as an asset on the company's balance sheet, rather than being expensed immediately like operational expenditures. 2024 Budget Update on capex In a bid to invigorate India's economic growth, Finance Minister Shrimat Nirmala Sitharaman unveiled the Interim Union Budget for 2024-25 in Parliament today, revealing an 11.1% surge in capital expenditure. The allocation now stands at ₹11,11,111 crore, equivalent to 3.4% of the GDP. This strategic move aligns with the government's overarching goal of propelling economic advancement and fostering employment opportunities. It also builds upon the remarkable achievement of tripling capital expenditure over the past four years, showcasing a steadfast commitment to sustainable progress and development. Fiscal Deficit after Budget 2024 Fiscal deficit refers to the variance between government expenditure and income. For FY24, the fiscal deficit has been narrowed to 5.8%, down from the estimated 5.9%. Moving forward, the target for 2024-25 has been set at 5.1%, lower than the revised budgeted figure for 2023-24. The objective is to reach a fiscal deficit target of below 4.5% by 2025-26. IMF Report on Indian Economy The International Monetary Fund (IMF) forecasts India's ascent to the position of the third-largest economy by 2027, marking a substantial contribution to global economic expansion. Supported by optimistic projections from renowned international bodies such as the World Bank, IMF, OECD, and ADB, India's growth trajectory is anticipated to range between 6.1% and 6.7% in the fiscal year 2024-25. These estimations underscore India's increasingly pivotal role in shaping the future landscape of the global economy. Summary In the fiscal year 2024-25, total receipts, excluding borrowings, are estimated at ₹30.80 lakh crore, while total expenditure is projected to be ₹47.66 lakh crore, with tax receipts expected to reach ₹26.02 lakh crore. Budget 2024 sets forth a vision to transform India into a "Viksit Bharat" by 2047, highlighting a comprehensive approach to development across diverse sectors. (Internal Research)

02-02-2024

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Tips & Advice

Budget 2024 Highlights and Updates

In her sixth consecutive budget presentation, Union Finance Minister Shrimati Nirmala Sitharaman unveiled the Interim Budget 2024 amidst the looming Lok Sabha elections. Eschewing populist measures, she maintained status quo on direct and indirect tax rates. With a forward-looking vision spanning the next five years, Hon’ble Finance Minister forecasted unprecedented growth, earmarking a substantial Rs 11.1 lakh crore for capital expenditure in the upcoming fiscal year, marking an 11% surge from the current year. Noteworthy is the government's ambition to trim the fiscal deficit target to 5.1% of GDP in the forthcoming fiscal, with a further target of 4.5% in FY26. Given its interim nature, a more comprehensive fiscal year budget is slated for presentation post the formation of a new government following the Lok Sabha Elections. Here are the key highlights: Direct and indirect tax rates remain unchanged. The government has waived income tax demands up to ₹25,000 (up to 2009-10) and ₹10,000 from 2010-11 to 2014-15, benefiting approximately one crore taxpayers. A new scheme is set to aid middle-class individuals residing in rented accommodations to purchase or construct their own homes. Additionally, tax benefits for start-ups and investments by sovereign wealth or pension funds have been extended for an additional year until March 31, 2025. Capital expenditure sees an 11% increase, now reaching ₹11.11-lakh crore. Meanwhile, the fiscal deficit projection for FY25 stands at 5.1%, lower than the revised estimate of 5.8% in FY24. Government borrowing for the next fiscal year is slated at ₹14.13-lakh crore, a decrease from ₹15.43 lakh crore in FY24. The expected growth rate for nominal GDP in FY25 is 10.5%. Disinvestment from central public sector enterprises (CPSEs) is targeted to reach ₹50,000 crore for FY25, up from ₹30,000 crore in FY24. The gross tax revenue goal for FY25 sees an 11.46% increase to ₹38.31-lakh crore, with direct tax collection targeted at ₹21.99-lakh crore and indirect tax at ₹16.22-lakh crore. The government plans to publish a white paper addressing pre-2014 economic mismanagement. Next-generation reforms will be introduced in collaboration with states and stakeholders. Additionally, a high-powered panel will be established to tackle population growth challenges and demographic changes. In summary, the interim budget serves as a temporary financial blueprint during an election year, catering to immediate fiscal requirements until a new government assumes office. The comprehensive union budget is slated for unveiling post-elections, usually around April-May. As customary, the interim budget tends to avoid major policy pronouncements and significant reforms. (Internal Research)

02-02-2024

Personal Finance

Personal Loan Kya Hota Hai?

Sapne dekhna aur unko sach karne ke liye har sambhav koshish karna aapka adhikaar hai! Sapnon ko sach karne ke liye paison ki zaroorat hoti hai, aur yeh zaroorat poori karne ke liye Personal Loan sabse behtar aur aasaan vikalp hai. Agar aapka CIBIL score achha hai aur aapke niji pehchaan aur income ke documents ke sahi hain, toh aapko Personal Loan mil sakta hai Hua na yeh apne sapne poore karne ka ekdum aasaan aur jhatpat tareeka? [B-01] Yeh Personal Loan kya hota hai? Personal Loan ek unsecured loan hai, jo loandaata aapko bina koi collateral liye deta hai. Iss loan ke liye, loandaata aapse koi bhi cheez security ke taur par nahi maangta hai. Yaani aapko apna ghar, gaadi ya aur koi sampatti loandaata ke paas girvi rakhne ki zaroorat nahi hai. Apne koi bhi zaroori ya emergency kharche ke liye, Personal Loan sabse achha vikalp hai. Khaas taur par, jab aapko medical expenses ke liye ekdum urgently paise chahiyein, toh aap Personal Loan lekar unko fauran poora kar sakte hain. Ab aap jaan gaye honge ki Personal Loan kya hota hai, aur yeh aapke liye kitna zaroori hai. Personal Loan lekar aap inme se kisi bhi khwahish ko turant poora kar sakte hain: Apna mann chaaha bada TV khareedne ke liye Apni family ko videsh yatra par le jaane ke liye Apna ghar mann mutabik decorate karne ke liye Apne bachhon ki higher education ke liye Inke ilava, aur bhi koi sapna jo aap poora karna chaahein, woh aap Personal Loan lekar poora kar sakte hain. Personal Loan application karne se pehle yeh zaroor karein Apna loandaata chunne se pehle, aapko vibhinn loandaataon ke byaj daron aur unke neeyamon aur sharton ko dhyaan se padhna aur samajhna chahiye. Aapko yeh bhi dekhne chahiye ki kaunse loandaata loan ke poorv bhugtaan, yaani pre-payment, aur poorv chuktaan, yaani foreclosure, karne par charge lagate hain aur kitna lagate hain. Sabhi loan daataon ke alag loan processing charges hote hain. Yeh zaroori nahi hai ki jis loandaata ke processing charges sabse kam hain, aapko usise loan lena chahiye, kyunki ho sakta hai ki uss loandaata ke doosre charges aur byaaj dar doosre loandaataon ke mukable zyaada hon. Piramal Finance se aapko aasaan sharton aur kifaaiti byaaj dar par Personal Loan turant mil sakta hai. Yeh loan poori tarah digital hai, matlab aap loan ke liye hamari website par kar apply sakte hain. Aapko sirf apna Aadhaar aur Pan Card number aur apna income proof share karna hoga. Jab aapka loan approve hokar process ho jaayega, toh loan ki rakam turant aapke bank account mein aa jaayegi. Aur yeh sab ghanton mein nahi, minton mein hoga! Toh der kis baat ki? Apne Tatkaal Personal Loan ke liye neeche diye gaye link par abhi apply karein, aur apna sapna sach karne ke liye pehla kadam uthaayein!

24-01-2024

Tips & Advice

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Best Beaches in India for Ideal Beach Holiday

India is home to some of the most beautiful beaches in the world. From the bustling beaches of Goa to the serene shores of Kerala, India has something for every type of beach lover. Are you dreaming of exploring the heavenly beaches of India but don't have the funds to make it happen? A travel loan may be the solution you need to make your dream a reality. Here are some of the best beaches in India, including those in Lakshadweep and Andaman; you can go for a mini vacation with a travel loan: Lakshadweep Islands: Lakshadweep, meaning "a hundred thousand islands" in Malayalam, is a group of breath-taking coral islands scattered in the Arabian Sea, off the southwestern coast of India. Consisting of 36 atolls, coral reefs, and islets. Agatti, Bangaram, and Kadmat islands in Lakshadweep offer pristine white sandy beaches and crystal-clear turquoise waters. These islands are known for their coral reefs, making them perfect for snorkeling and diving. No beach holiday is complete without indulging in some delicious food, and Lakshadweep Islands offer a variety of local delicacies, from fresh seafood to spicy curries. Andaman and Nicobar Islands: The Andaman and Nicobar Islands, an archipelago in the Bay of Bengal, represent an exotic paradise known for its stunning natural beauty, diverse flora and fauna, and rich cultural heritage. It comprises over 500 islands, including the heavenly ones like Radhanagr and Havoc. These relaxing islands provide breathtaking landscapes and diverse attractions catering to a wide range of interests. The Cellular Jail in Port Blair, also known as Kala Pani is a historic site that served as a colonial prison. It is a reminder of the sacrifices made by Indian freedom fighters during the struggle for independence. Kovalam Beach, Kerala Kovalam Beach is a popular tourist destination in Kerala, known for its picturesque views and tranquil atmosphere. The beach is divided into three parts - Lighthouse Beach, Hawah Beach, and Samudra Beach - each offering a unique experience. Lighthouse Beach is the most popular and busiest part of Kovalam Beach, with a variety of water sports activities and beach shacks. Hawah Beach, also known as "Eve's Beach," is a quieter and more secluded area, perfect for a peaceful retreat. Samudra Beach is the least crowded and offers stunning views of the Arabian Sea. Gokarna Beach, Karnataka Gokarna Beach is a small and secluded beach in Karnataka, perfect for those looking for a quiet and peaceful getaway. The beach is surrounded by lush green hills and offers stunning views of the Arabian Sea. Gokarna Beach is also known for its religious significance, with several temples located nearby. Visitors can take a dip in the holy waters or attend the evening aarti (prayer ceremony) at the Mahabaleshwar Temple. Marina Beach, Tamil Nadu Marina Beach is the longest urban beach in India, stretching over 13 kilometers along the Bay of Bengal. The beach is a popular spot for locals and tourists alike, with a variety of activities and attractions. Visitors can stroll along the promenade, enjoy a horse ride, or try local street food. The beach also has several monuments and statues, including the iconic lighthouse. Arambol Beach, Goa Arambol is a laid-back beach in North Goa known for its bohemian atmosphere. It's a great place for those looking to unwind, practice yoga, or engage in water sports. It is one of the more secluded and less crowded beaches in Goa, making it a favourite among travelers seeking a tranquil and offbeat coastal experience. Tarkarli Beach, Maharashtra Tarkarli Beach is a beautiful coastal destination situated in the Sindhudurg district of Maharashtra, India. Known for its pristine white sand and clear blue waters. Also, a notable coastal attraction in the Sindhudurg district is the Sindhudurg Fort, just a few minutes away from the beach. Not to forget, it is renowned for its delicious Malvani cuisine. Visitors can savour fresh seafood and local Malvani dishes at the beachside shacks and restaurants. Conclusion A travel loan can be a great option for those looking to explore the beaches of India. With flexible repayment options, no collateral required, and a quick and easy application process, a travel loan can help make your dream beach vacation a reality. A travel loan can help you cover the costs of flights, accommodations, and other travel-related expenses. There are thousands of beaches present on and around the coasts of India, which are the ideal getaway for families, couples, and friends.

24-01-2024

Credit Scores

Unlock Financial Stability: Improve Your Credit Score by Avoiding Credit-Related Habits

Your credit score is a crucial factor in your financial life. It determines your eligibility for loans, credit cards, and even affects your insurance rates and job opportunities. A good credit score can open doors to financial opportunities, while a poor credit score can limit your options and cost you more in the long run. While there are many ways to improve your credit score, one of the most effective methods is to avoid certain credit-related habits. In this article, we'll explore how avoiding these habits can significantly improve your credit score and help you achieve financial stability. [B-01] Why Is Your Credit Score Important? Before we dive into the habits to avoid, let's first understand why your credit score is so important. Your credit score is a three-digit number that represents your creditworthiness. It is calculated based on your credit history, including your payment history, credit utilization, length of credit history, types of credit, and new credit. Lenders use your credit score to determine your risk level and decide whether to approve your loan or credit application. A higher credit score indicates that you are a responsible borrower and are more likely to make timely payments, while a lower credit score suggests that you may be a riskier borrower. A good credit score can also help you secure lower interest rates, which can save you thousands of dollars in the long run. On the other hand, a poor credit score can result in higher interest rates, making it more expensive for you to borrow money. Habits to Avoid for a Better Credit Score Now that we understand the importance of a good credit score, let's look at some habits that can negatively impact your credit score. Late or Missed Payments Your payment history is the most crucial factor in determining your credit score, accounting for 35% of your overall score. This means that consistently making timely payments is crucial for maintaining a good credit score. Late or missed payments can significantly damage your credit score, as they indicate that you are not a responsible borrower. Even one missed payment can cause your credit score to drop, so it's essential to make all your payments on time. To avoid late or missed payments, consider setting up automatic payments or setting reminders for yourself. You can also contact your lender if you are having trouble making payments and see if they can offer any assistance. High Credit Utilization Credit utilization refers to the amount of credit you are using compared to your total credit limit. It is another significant factor in determining your credit score, accounting for 30% of your overall score. Using too much of your available credit can suggest that you are relying too heavily on credit and may have trouble making payments. This can negatively impact your credit score, even if you make timely payments. To improve your credit score, aim to keep your credit utilization below 30%. This means that if you have a credit limit of Rs 1,00,000, you should aim to keep your balance below 30,000. Applying for Too Much Credit Every time you apply for credit, a hard inquiry is made on your credit report. This can cause your credit score to drop by a few points, and multiple hard inquiries in a short period can significantly damage your credit score. Avoid applying for too much credit at once, as this can suggest that you are in financial trouble and may be a risky borrower. Instead, only apply for credit when you need it and space out your applications to avoid multiple hard inquiries. Closing Old Credit Accounts The length of your credit history is another crucial factor in determining your credit score, accounting for 15% of your overall score. This means that the longer you have had credit, the better it is for your credit score. Closing old credit accounts can significantly impact the length of your credit history, as it removes the oldest accounts from your credit report. This can cause your credit score to drop, especially if you have a short credit history. Instead of closing old credit accounts, consider keeping them open and using them occasionally to keep them active. This will help maintain the length of your credit history and improve your credit score. Co-signing for Someone Else's Loan Co-signing for someone else's loan means that you are responsible for the debt if the primary borrower fails to make payments. This can significantly impact your credit score, as it increases your credit utilization and adds a new account to your credit report. Before co-signing for someone else's loan, consider the potential risks and whether you are willing to take on the responsibility. If you do decide to co-sign, make sure to monitor the account and ensure that payments are being made on time. How to Manage Your Credit Responsibly Now that we've covered the habits to avoid let's look at some ways to manage your credit responsibly and improve your credit score. Make Timely Payments As mentioned earlier, your payment history is the most crucial factor in determining your credit score. To maintain a good credit score, make sure to make all your payments on time. If you are having trouble making payments, contact your lender and see if they can offer any assistance. You can also consider setting up automatic payments or setting reminders for yourself to ensure that you don't miss any payments. Keep Your Credit Utilization Low As a general rule, aim to keep your credit utilization below 30%. This means that if you have a credit limit of 1,00,000, you should aim to keep your balance below 30,000. If you have a high credit utilization, consider paying off your balances or requesting a credit limit increase. This will help lower your credit utilization and improve your credit score. Monitor Your Credit Report It's essential to monitor your credit report regularly to ensure that all the information is accurate. If you notice any errors or fraudulent activity, make sure to report it to the credit bureau immediately. You can request a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year. You can also use credit monitoring services to receive regular updates on your credit report and score. Limit Your Credit Applications As mentioned earlier, applying for too much credit can negatively impact your credit score. To avoid this, only apply for credit when you need it and space out your applications to avoid multiple hard inquiries. Keep Old Credit Accounts Open To maintain the length of your credit history, consider keeping old credit accounts open and using them occasionally to keep them active. This will help improve your credit score and show lenders that you have a long history of responsible credit management. Conclusion Your credit score is a crucial factor in your financial life, and avoiding certain credit-related habits can significantly improve it. By making timely payments, keeping your credit utilization low, limiting your credit applications, and keeping old credit accounts open, you can improve your credit score and achieve financial stability. Remember to monitor your credit report regularly and report any errors or fraudulent activity to the credit bureau. With responsible credit management, you can achieve a good credit score and open doors to financial opportunities.

24-01-2024

How To?

How To Improve Your Home Loan Eligibility?

credit score, etc. are used by banks to determine whether to approve or reject a borrower’s home loan application. In this blog, we will talk about key factors that will help you improve your home loan eligibility while applying for the loan. Tips to Increase Home Loan Eligibility Applying for a home loan does not guarantee loan approval as there are multiple factors involved when evaluating a loan application. Before you begin your loan application process, it is crucial to understand the factors that contribute to enhancing home loan eligibility. Listed below are some of the key methods that can help you improve your home loan eligibility and to get lower home loan interest rates. Take a Joint Loan – Adding a co-applicant to your home loan application enhances your home loan eligibility. If you add an earning family member with an amazing credit score, your chances of getting a higher loan amount increase. One of the major factors while evaluating the home loan eligibility of an applicant is the income of the applicant. If two earning members of the family apply for the loan, your repaying ability increases, and the loan amount can also get higher. Pay off your debts – The debt-to-income ratio is considered by the lenders when assessing your home loan eligibility. A debt to income ratio is defined as the amount of your income that goes into paying your existing debts such as a personal loan or a vehicle loan. Paying off your existing loans increases your home loan eligibility. Paying your credit card bills in a timely manner has a positive impact on your credit score. So if you have a good repayment record, it would add to your chances of loan approval. The possibility of getting the loan sanctioned is much higher if you are debt-free when applying for home loan. Check your credit score – The creditworthiness of a loan applicant is one of the key parameters considered by banks and NBFCs. A good credit score is a reflection of your repayment capability and helps improve your home loan eligibility. Keep an eye on your credit score when planning to apply for a loan. If you maintain a credit score above 750 then the likelihood of home loan approval and lower home loan interest rates from the lender are high. A lower credit score can be a reason for the rejection of a loan by the lender. Take corrective measures to improve your credit score before applying for the loan. Opt for longer tenure – Home loan repayment tenures can go up to 25 years. The longer the tenure of the loan, the lower the home loan EMI. The lower the EMI, the lower the risk for the lender. During the risk assessment process, the longer tenure loans are preferred by lenders because of the lesser risk involved. The lender’s risk is reduced as the EMI amount to be paid is much lower. Another benefit of longer tenure loans is that the lower home loan EMI allows people with lower income levels to apply for home loan. Declare additional income source – Declaring your additional income source, if any, enhances your home loan eligibility. Additional income can be anything ranging from mutual fund dividends to income through rental property. Anything that is over and above your in-hand income is considered as an additional income source. Showing additional income sources adds to the confidence of a lender as it indicates a higher repayment capacity of the borrower. [B-02] Conclusion Home loan has increasingly become much more accessible and affordable for people who aspire to have their own home. Due to the advent of technology and easy access to the internet, application evaluation and loan approval processes have become simpler and faster. But before you start your home loan application process, it is important to understand the parameters used by lenders to gauge the loan repayment capability of the borrower.

08-11-2023

Know More

What Are The Different Fees And Charges On Loans Against The Property?

A loan against property, often termed a mortgage loan or LAP, is a popular loan type available to salaried, self-employed, and self-employed non-professionals. The property against the loan serves as security, and the loan amount is sanctioned based on an assessment of several variables. Obtaining an LAP entails some minimal fees and small expenses for loan processing, property verification, and so on. These fees are relatively minimal, and they assist in making the process easier and less stressful for both the lender and the borrower. While some charges are fixed, others may vary depending on the amount obtained. Let’s take a closer look at the details of these charges: Legal Charges – The lender checks all property-related paperwork before approving a loan against your property. They also examine the risk in the applicant’s profile using legal papers and property verification. This legal fee might range between Rs 5,000 and Rs 10,000. Loan against property processing fees – The Loan against property processing fee gets charged when the loan is processed. This one-time fee is imposed when the application form is submitted. This charge might range from 0.5% to 2% of your loan amount, plus GST. CIBIL Report charges – CIBIL charges a modest fee since banks review the credit score while evaluating loan applicants. Secure fees—The lender levies this charge on loan against property to enhance security for your account, transactions, and sensitive information or data in whatever way they feel necessary. This charge can be avoided using online loan administration, which most loan providers now provide. Statement fees – The cost of printing and mailing interest and principal statements, as well as loan statements that assist you in tracking your loan, are referred to as statement charges on a mortgage loan. Loan rescheduling fees – Loan rescheduling extends or adds time to your current loan term. It causes a modification in your monthly instalment sum, allowing you to pay less each month. However, doing so imposes this rescheduling fee charged by the lender. EMI bounce charges – If you pay your EMIs by cheque and the cheque fails to owe insufficient funds, you will get charged an EMI bounce charge. However, as a borrower, if the same thing happens during your LAP EMI payment, your lender may charge you a bouncing fee. Penal interest charges – This fee is applied to your mortgage loan if you fail to make timely payments. Typically, the penalty or default fee is 2% per month or 24% per year on the outstanding sum. This charge may differ from one lender to the next.Out of these charges, EMI bounce charges and penal interest charges can be avoided if you plan to pay ahead of time and never miss a payment.Additional charges, like Part- payment and Foreclosure charges, may be added to your loan against property charges if you opt to pay more toward the loan’s closing before the tenor ends: Part-payment charges—A part-payment or a part pre-payment charge is the fee imposed by the lender if you pay off a portion of your total rather than the entire amount. Floating-rate schemes, once again, are generally immune from this. Foreclosure charges are the cost of repaying the outstanding loan balance in a single payment rather than several EMIs. Like prepayment, foreclosure incurs a fee. Ensure your loan has a low foreclosure charge to make payments easier. In addition to the fees listed above, the lender may charge you for loan statements, noncompliance, and the issuance of duplicate NOCs. [B-02] To sum up Understanding the various loan against property charges is just as important as understanding the facts, such as the loan against property criteria and the paperwork required. You can make informed decisions by taking into account all these charges. It is wise to thoroughly examine the lender’s website and be aware of these additional charges to make the most of your loan against property.

08-11-2023